Gold falls B250 on rosy US data

Gold falls B250 on rosy US data

Gold prices dropped by 250 baht per baht weight at its opening on Saturday.

The Gold Traders Association announced the buying price at 18,050 baht and the selling price at 18,150 baht per baht-weight for gold bars.

The buying price for gold ornaments was 17,782.68 while their selling price was 18,550 baht per baht-weight.

In world markets, Bloomberg reported from New York bullion erased its 2015 gains and slumped the most in more than a year on Friday after a government report showed American employers added more jobs than forecast in February.

The unemployment rate dropped to the lowest in almost seven years. Holdings in exchange-traded funds backed by gold headed for the biggest weekly decline since November.

A stronger economy is fuelling speculation that the Federal Reserve is getting closer to raising interest rates for the first time since 2006, damping the appeal of the metal, which generally offer returns through price gains. Futures fell 5.2% last month amid gains in US equities and easing concern over Greece’s debt.

“People don’t see much need for safe-haven assets,” Kevin Chen, the chief investment officer of New York-based Three Mountain Capital Management LP, said in a telephone interview. “The jobs report is another indication that the economy is doing very well.”

On the Comex, gold futures for April delivery fell 2.7% to settle at $1,164.30 an ounce at 1.41pm in New York, the biggest drop since Dec 19, 2013. Earlier, the metal slumped to $1,162.90, the lowest since Dec 1.

Gold dropped 29% in the previous two years as the dollar surged and inflation remained low. Prices climbed 70% from December 2008 to June 2011 partly as the Fed held interest rates near a record low.

The US currency rose against most major peers after the employment data, cutting the appeal of bullion as an alternative asset. While the Fed has said it will be “patient” on increasing borrowing costs, Chair Janet Yellen said last week the timing will depend on economic data.

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